Most people understand that you can save a lot of money by using solar energy but not a lot of people know how it actually makes electricity. This is a basic description of the components, what they do, and how they all work together. First, the solar panels convert sunlight directly into electricity. When the sun’s rays hit the specially coated silicon in the solar panels, electrons are released. Due to the way the silicon is laid out in the panels the current or electricity flows out in one direction. In other words, solar panels make direct current electricity. Direct current electricity is great but it does not work with our house’s electrical circuits. Our homes (and businesses) use AC or alternating current to power all of our lights, appliances, some heaters, and many other things.
The device that converts the solar panel’s direct current into alternating current is called the inverter. This device collects all of the direct current electricity and converts it to usable AC electricity for our homes and businesses. Inverters are usually placed next to your breaker panel for easy access. The electricity from the inverter (now AC) goes right into your breaker panel and flows through your home so that you can use it.
Now that you have usable AC electricity flowing from your inverter into your home, a few other questions come to mind. What happens if I produce more electricity than I use? Do I get paid for the electricity I produce? All of these questions can be answered by learning a concept called net-metering. Net-Metering is the process where your utility company replaces your existing electrical meter with a new bi-directional meter. This new meter spins both ways allowing for electricity to flow out onto the grid. If that’s the case and your solar system is using more power than you are consuming, your utility will credit you for the power that you generate. Basically, your utility company will be able to keep track of how much energy you consume from the grid and how much power you generate from your solar system because of your fancy new net-meter. At the end of the month your utility company will charge you the difference between your usage and your production. For example: if you used 800 kilowatt hours of electricity but your solar system produced 600 kilowatt hours, the utility company would only charge your for 200 kilowatt hours. That means that your solar is offsetting roughly 75% of your energy needs for that month. Hooray for sunshine!












